Spain Country Guide
Why Should I/We Buy in Spain?
Buying property in Spain offers several advantages that can appeal to both investors and individuals looking for a new home or a vacation getaway. Here are some key points on why you should consider buying property in Spain:
Attractive Climate and Lifestyle: Spain is renowned for its sunny climate, beautiful beaches, and rich cultural heritage. This makes it an ideal location for those seeking a warm climate, outdoor activities, and a relaxed lifestyle.
Strong Rental Market: With Spain being a popular tourist destination, there is a strong demand for vacation rentals. This can provide property owners with a good source of income, especially in tourist-heavy regions like the Costa del Sol, the Balearic Islands, and the Canary Islands.
Affordable Property Prices: Compared to other Western European countries, Spain offers competitive property prices, making it an accessible option for many international buyers. Additionally, the Spanish property market has shown signs of steady growth, suggesting potential for capital appreciation.
Quality of Life: Spain scores high in terms of quality of life, offering excellent food, a vibrant culture, and access to a wide range of leisure activities. Its healthcare system is also highly regarded, which is an important consideration for retirees and families.
Golden Visa Program: Spain offers a Golden Visa program for non-EU investors, granting residency in exchange for a significant investment in real estate. This can be an attractive option for those looking to gain residency in the EU.
Diverse Regions: Spain offers a wide variety of landscapes and settings, from beachfront properties to mountain retreats and urban apartments. This diversity means there’s something for every preference and budget.
Strong Infrastructure: Spain boasts a modern infrastructure, with excellent roads, airports, and high-speed trains connecting different parts of the country and the rest of Europe. This makes it easy to travel both domestically and internationally.
Friendly to Foreign Buyers: The Spanish government and legal system are generally welcoming to foreign buyers, with straightforward procedures for purchasing property. There are also many legal and real estate professionals who specialize in assisting international clients.
Retirement Haven: For retirees, Spain is an attractive option due to its low cost of living compared to other Western European countries, coupled with the benefits of the Spanish healthcare system.
Cultural and Gastronomic Richness: Spain offers a deep cultural heritage, famous festivals, and a world-renowned culinary scene, adding to the appeal of owning property and living there.
When considering purchasing property in Spain, it’s important to conduct thorough research, consider the location carefully, and seek professional advice to navigate the legal and financial aspects of the property market.
Buying Process in Spain
Buying property in Spain involves a series of steps and is associated with various taxes and fees. Understanding this process and the associated costs is crucial for a smooth transaction. Here’s an overview:
Property Search and Selection: Begin with researching and selecting the property that fits your criteria in terms of location, size, and budget.
Legal Checks: It’s essential to conduct legal checks on the property to ensure there are no outstanding debts, liens, or legal issues. Hiring a local lawyer who specializes in real estate transactions can be very helpful.
Reservation Agreement: Once you’ve chosen a property, you typically sign a reservation agreement and pay a deposit (usually a few thousand euros) to take the property off the market. This deposit is usually non-refundable.
Private Contract of Sale: After the legal checks, a private contract of sale (contrato privado de compraventa) is signed between the buyer and seller, and a larger deposit (often 10% of the purchase price) is paid.
Mortgage Arrangements: If you need financing, this is the time to finalize your mortgage arrangements with a bank.
Completion (Escritura de Compraventa): The final step is the signing of the deed of sale (escritura de compraventa) before a notary, payment of the remaining purchase price, and transfer of the property. The deed is then registered in the Land Registry.
The cost of buying property in Spain includes various taxes and fees, which can add approximately 8-12% (sometimes more in certain regions) to the property’s purchase price. These costs include:
Transfer Tax (Impuesto de Transmisiones Patrimoniales, ITP): Applicable to resale properties, varying by region from 6% to 10%.
VAT (IVA) & Stamp Duty: For new properties, VAT is 10% on the purchase price plus 1.5% stamp duty. In the Canary Islands, the VAT is lower, at 6.5%.
Notary Fees: The cost for notary services varies depending on the property price, typically ranging from €600 to €1,000.
Land Registry Fees: To register your property, expect to pay between €400 and €700, depending on the property value.
Legal Fees: Hiring a lawyer is highly recommended, with fees typically ranging from 1% to 2% of the purchase price.
Mortgage Costs: If you take out a mortgage, there will be additional costs, including a valuation fee, application fee, and mortgage stamp duty, which vary depending on the mortgage provider and the amount borrowed.
Other Costs: These may include administrative fees, community fees for properties within a development, and ongoing property taxes.
It’s important to budget for these additional costs when planning your property purchase in Spain. Engaging a reputable real estate agent and a lawyer can help navigate the process and avoid unexpected expenses.
Introducing Spain’s Most Popular Coastal Hotspots
When it comes to buying property in Spain, two coastal regions consistently stand out for international buyers: the Costa Blanca and the Costa del Sol. Each offers a different level of lifestyle, climate, investment potential, and charm—making them highly attractive destinations whether you’re searching for a holiday home, retirement retreat, or a long-term relocation opportunity.
Costa Blanca:
Stretching along the southeastern coastline in the province of Alicante, the Costa Blanca boasts over 200 kilometers of Mediterranean shoreline, golden beaches, and an enviable climate with over 300 sunny days a year.
Key Highlights:
Diverse Locations: From the cosmopolitan city of Alicante to charming towns like Javea, Moraira, Torrevieja, Villamartin, Guardamar and Denia, there’s something for everyone.
Great Value for Money: Property prices remain competitive, especially in comparison to other parts of Western Europe.
Expat-Friendly: A strong international community and English-speaking services make settling in easy.
Excellent Infrastructure: Modern healthcare, schools, golf courses, and two international airports (Alicante & Murcia).
Outdoor Lifestyle: Ideal for beach lovers, hikers, and those seeking a healthier, Mediterranean way of life.
Why Choose the Costa Blanca?
Affordable, scenic, and incredibly liveable, Costa Blanca is ideal for families, retirees, and digital nomads alike. It offers a balanced mix of traditional Spanish culture and modern conveniences, making it a smart choice for overseas buyers.
Costa del Sol:
Located in Andalusia, along the southern Mediterranean coastline, the Costa del Sol is famed for its glamorous lifestyle, luxurious properties, and year-round sun. It includes iconic destinations like Marbella, Estepona, Mijas, and Benalmádena.
Key Highlights:
Upscale Appeal: Home to luxury villas, golf resorts, marinas, and Michelin-starred dining—especially around Marbella and Puerto Banús.
Proven Investment Hotspot: Strong rental demand, capital growth, and a thriving international property market.
Excellent Connectivity: Served by Málaga International Airport, with direct flights across Europe.
World-Class Golf: Known as the “Costa del Golf,” with over 70 courses.
Diverse Lifestyles: From laid-back Andalusian villages to buzzing beach clubs and cultural city life in Málaga.
Why Choose Costa del Sol?
If you’re seeking prestige, lifestyle, and a stable property investment, Costa del Sol offers all three in abundance. It appeals to luxury buyers, investors, and anyone looking to enjoy the good life under the Spanish sun.